Hollywood Strikes Back: Disney and Universal Sue AI Image Generator Midjourney for Copyright Infringement

In a groundbreaking legal move that may shape the future of artificial intelligence and copyright law, entertainment giants Disney and Universal have jointly filed a lawsuit against Midjourney — one of the internet’s most widely used AI image-generation platforms. The case, filed in California federal court, alleges that Midjourney has built its billion-dollar product on the unauthorized use of copyrighted material, including characters, artwork, and intellectual property owned by the studios.

This is the first major legal action by Hollywood against an AI company — and it will not be the last.

A "Bottomless Pit of Plagiarism"?

The complaint pulls no punches. Disney and Universal describe Midjourney as a "virtual vending machine" and a "bottomless pit of plagiarism" capable of churning out endless images of beloved characters like Bart Simpson, Ariel, Wall-E, Shrek, and even the lightsaber-wielding cast of Star Wars — all with just a few keystrokes from the user.

Midjourney’s software is powered by massive datasets, trained on billions of images scraped from across the internet. That includes — according to the studios — their copyrighted material, used without permission or compensation. And while the technology feels new, the legal argument is rooted in old-fashioned copyright law: you cannot reproduce, distribute, or create derivatives of protected works without a license. AI, in this context, does not change the rule.

Where AI and IP Collide

The lawsuit arrives amid mounting concern in creative industries: how do we embrace artificial intelligence as a tool without watching it replace, or worse — exploit — the artists, creators, and storytellers behind the content?

From musicians to authors, visual artists to filmmakers, there's a growing outcry about how generative AI models are trained. Unlike a human artist inspired by a body of work, AI programs ingest copyrighted content wholesale and learn to replicate it. In fact, Disney and Universal allege that Midjourney has the ability to filter certain outputs — like nudity or violence — and yet has not taken similar steps to block the generation of copyrighted characters.

The Stakes: Innovation or Infringement?

The studios are not anti-innovation. In fact, Disney’s Chief Legal Officer Horacio Gutierrez made clear in a statement that the company remains “bullish” on AI’s potential. But, as he pointed out, “Piracy is piracy.” Whether a person or a machine is behind it makes no legal difference under the Copyright Act.

The Motion Picture Association echoed this sentiment, calling copyright protections the "backbone of our industry" and emphasizing the need for a “balanced approach to AI” that both protects creators and supports innovation.

Midjourney, for its part, has not yet responded publicly to the lawsuit. But in a related 2023 case brought by a group of visual artists, the company defended its position by arguing that the images it generates are mere fragments of its overall training data — akin to how a human might synthesize their life’s experiences into creative output.

That may prove to be a hard sell in court, especially when there are clear outputs that mimic recognizable, copyrighted characters and franchises.

What's Next?

The plaintiffs are seeking statutory damages of up to $150,000 per work and an injunction to stop Midjourney from further infringing activity. With over 150 works allegedly violated, the potential damages exceed $20 million — and the implications for the future of generative AI are enormous.

This lawsuit is more than a battle over images. It’s a fight over the rules of engagement between AI technology and intellectual property. For creators, lawyers, technologists, and consumers alike, this case will likely help define the boundaries of what is fair use, what is infringement, and whether innovation must come at the cost of creative ownership.

At Ed White Law, we believe that technology should empower — not exploit — the creative spirit. If you are a creator, entrepreneur, or company concerned about how AI intersects with your intellectual property, we are here to help.